Compensation and Performance Tracking

Attorneys work in a very high-stress environment and oftentimes feel they must always be the expert in the room. Embracing organization can not only make repetitive tasks more efficient, but also reduce stress. Well-organized attorneys will take advantage of the ability to automate many daily tasks. Being organized is not “set it and forget it.” It is an ongoing process. Being organized should be a firm initiative and everyone in the law firm needs to embrace increased organization.

Automation can be defined in many ways by many industries; however, it doesn’t always have to apply to complex procedures like robotic process automation (RPA) or “advanced tasks.” In law firms, automation is frequently defined as using software to automate tedious and repetitive tasks to get work done faster and more efficiently. Law firms can automate a substantial portion of their work with technology. For example, most firms repurpose their pleadings, templates, form letters, and other documents completed for past clients – why reinvent the wheel? Yet, according to a recent Statista survey, 75 percent of the lawyers who responded said they spent more than 20 hours per week on non-billable work like legal research, court filings, and administrative tasks.

For attorneys, missing a deadline is no laughing matter. Depending on the jurisdiction, rules and the judge, sanctions might be a stern admonishment by the judge, an order to pay some or all the attorneys' fees incurred by the opposing party or, worst case, dismissal of a party’s lawsuit. If you practice in more than one jurisdiction, the rules may differ, making date tracking even more complex.

Our title borrows a famous quote from William Edwards Deming, an American engineer, statistician, professor and author often labeled “the original data scientist.” Deming also said, “Without data, you're just another person with an opinion.” Fortunately, the legal landscape is rapidly shifting, and digital transformation is allowing us to inform our business strategy opinions with facts. Firms of the future will enjoy a new digital reality with the help of practice management platforms and data analytics solutions. As new tools reduce complexity, data analytics has become a primary driver of business strategy. This is particularly in response to the continuing situation with COVID-19, which has changed every aspect of how and where law firms work and collaborate.

Payment management is a critical workflow that every law practice must manage. The reality is that payment management is no longer just about invoices mailed to clients or waiting to receive payments by mail. It has evolved into something more mobile and flexible, which benefits both firms and clients.

In a flat fee arrangement, a law firm provides specific services to a client for a specified fee, no matter how many hours the attorneys spend performing those services. The legal fees are decided before the work is undertaken, making billing more manageable and reducing attorneys’ pressure to achieve billable targets.

In today’s workplace, 65% of employees are looking for another job. To compete for the best employees, employers must remain current, providing a quality, forward-thinking work environment which includes hybrid work options. Prior to the pandemic, law firms allowed only exempt employees (lawyers and professionals) to work remotely, and then only occasionally.

In most law practices, a qualified professional can predict the costs associated with operating a firm relatively accurately. Most expenses are easily forecasted including salaries, facilities and technology. However, revenue is a bit more difficult to predict.

Legal professionals use a wide variety of tools and methods for tracking time spent on billable matters. Some are sophisticated, while others are more problematic and error-prone; for example, lawyers who use giant spreadsheets that are updated at the end of each day or week or sticky notes to jot down each task by hand.